Texas 2017 - 85th Regular

Texas House Bill HB2393 Compare Versions

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1	1	85R3287 BEF-F
2	2	By: Guillen H.B. No. 2393
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to insurance premium tax credits for the certified
8	8	rehabilitation of certified historic structures.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle B, Title 3, Insurance Code, is amended
11	11	by adding Chapter 232 to read as follows:
12	12	CHAPTER 232. PREMIUM TAX CREDIT FOR CERTIFIED REHABILITATION OF
13	13	CERTIFIED HISTORIC STRUCTURES
14	14	Sec. 232.001. DEFINITIONS. In this chapter:
15	15	(1) "Certified historic structure" means a property in
16	16	this state that is:
17	17	(A) listed individually in the National Register
18	18	of Historic Places;
19	19	(B) designated as a Recorded Texas Historic
20	20	Landmark under Section 442.006, Government Code, or as a state
21	21	archeological landmark under Chapter 191, Natural Resources Code;
22	22	or
23	23	(C) certified by the commission as contributing
24	24	to the historic significance of:
25	25	(i) a historic district listed in the
26	26	National Register of Historic Places; or
27	27	(ii) a local district certified by the
28	28	United States Department of the Interior in accordance with 36
29	29	C.F.R. Section 67.9.
30	30	(2) "Certified rehabilitation" means the
31	31	rehabilitation of a certified historic structure that the
32	32	commission has certified as meeting the United States secretary of
33	33	the interior's Standards for Rehabilitation as defined in 36 C.F.R.
34	34	Section 67.7.
35	35	(3) "Commission" means the Texas Historical
36	36	Commission.
37	37	(4) "Eligible costs and expenses" means qualified
38	38	rehabilitation expenditures as defined by Section 47(c)(2),
39	39	Internal Revenue Code of 1986, except that the depreciation and
40	40	tax-exempt use provisions of that section do not apply to costs and
41	41	expenses incurred by a federal tax-exempt organization, and those
42	42	costs and expenses are eligible costs and expenses if the other
43	43	provisions of Section 47(c)(2), Internal Revenue Code of 1986, are
44	44	satisfied.
45	45	(5) "Federal tax-exempt organization" means an entity
46	46	exempted from the federal income tax under Section 501(a), Internal
47	47	Revenue Code of 1986.
48	48	(6) "State premium tax liability" means any liability
49	49	incurred by an entity under Chapter 221, 222, 223, or 224.
50	50	Sec. 232.002. ELIGIBILITY FOR CREDIT. (a) An entity is
51	51	eligible to apply for a credit against state premium tax liability
52	52	in the amount and under the conditions and limitations provided by
53	53	this chapter.
54	54	(b) An entity may apply for a credit under this chapter only
55	55	on or after the date the franchise tax under Chapter 171, Tax Code,
56	56	expires, is repealed, or otherwise becomes inapplicable to all
57	57	taxable entities under that chapter. The comptroller shall publish
58	58	notice in the Texas Register of the date the condition under this
59	59	subsection is satisfied.
60	60	Sec. 232.003. QUALIFICATION. An entity is eligible for a
61	61	credit for eligible costs and expenses incurred in the certified
62	62	rehabilitation of a certified historic structure as provided by
63	63	this chapter if:
64	64	(1) the rehabilitated certified historic structure is
65	65	placed in service on or after the date provided by Section
66	66	232.002(b);
67	67	(2) the entity has an ownership interest in the
68	68	certified historic structure in the year during which the structure
69	69	is placed in service after the rehabilitation; and
70	70	(3) the total amount of the eligible costs and
71	71	expenses incurred exceeds $5,000.
72	72	Sec. 232.004. CERTIFICATION OF ELIGIBILITY. (a) Before
73	73	claiming, selling, or assigning a credit under this chapter, the
74	74	entity that incurred the eligible costs and expenses in the
75	75	rehabilitation of a certified historic structure must request from
76	76	the commission a certificate of eligibility on which the commission
77	77	certifies that the work performed meets the definition of a
78	78	certified rehabilitation. The entity must include with the
79	79	entity's request:
80	80	(1) information on the property that is sufficient for
81	81	the commission to determine whether the property meets the
82	82	definition of a certified historic structure; and
83	83	(2) information on the rehabilitation, and
84	84	photographs before and after work is performed, sufficient for the
85	85	commission to determine whether the rehabilitation meets the United
86	86	States secretary of the interior's Standards for Rehabilitation as
87	87	defined in 36 C.F.R. Section 67.7.
88	88	(b) The commission shall issue a certificate of eligibility
89	89	to an entity that has incurred eligible costs and expenses as
90	90	provided by this chapter. The certificate must:
91	91	(1) confirm that:
92	92	(A) the property to which the eligible costs and
93	93	expenses relate is a certified historic structure; and
94	94	(B) the rehabilitation qualifies as a certified
95	95	rehabilitation; and
96	96	(2) specify the date the certified historic structure
97	97	was first placed in service after the rehabilitation.
98	98	(c) The entity must forward the certificate of eligibility
99	99	and the following documentation to the comptroller to claim the tax
100	100	credit:
101	101	(1) an audited cost report issued by a certified
102	102	public accountant, as defined by Section 901.002, Occupations Code,
103	103	that itemizes the eligible costs and expenses incurred in the
104	104	certified rehabilitation of the certified historic structure by the
105	105	entity;
106	106	(2) the date the certified historic structure was
107	107	first placed in service after the rehabilitation and evidence of
108	108	that placement in service; and
109	109	(3) an attestation of the total eligible costs and
110	110	expenses incurred by the entity on the rehabilitation of the
111	111	certified historic structure.
112	112	(d) For purposes of approving the tax credit under
113	113	Subsection (c), the comptroller may rely on the audited cost report
114	114	provided by the entity that requested the tax credit.
115	115	(e) An entity that sells or assigns a credit under this
116	116	chapter to another entity shall provide a copy of the certificate of
117	117	eligibility, together with the audited cost report, to the
118	118	purchaser or assignee.
119	119	Sec. 232.005. AMOUNT OF CREDIT; LIMITATIONS. (a) The total
120	120	amount of the credit under this chapter with respect to the
121	121	rehabilitation of a single certified historic structure that may be
122	122	claimed may not exceed 25 percent of the total eligible costs and
123	123	expenses incurred in the certified rehabilitation of the certified
124	124	historic structure.
125	125	(b) The total credit that may be claimed on a report,
126	126	including the amount of any carryforward under Section 232.006, may
127	127	not exceed the amount of state premium tax liability due for the
128	128	report after any other applicable tax credits.
129	129	(c) Eligible costs and expenses may only be counted once in
130	130	determining the amount of the tax credit available, and more than
131	131	one entity may not claim a credit for the same eligible costs and
132	132	expenses.
133	133	Sec. 232.006. CARRYFORWARD. (a) If an entity is eligible
134	134	for a credit that exceeds the limitation under Section 232.005(b),
135	135	the entity may carry the unused credit forward for not more than
136	136	five consecutive reports.
137	137	(b) A carryforward is considered the remaining portion of a
138	138	credit that cannot be claimed in the current year because of the
139	139	limitation under Section 232.005(b).
140	140	Sec. 232.007. APPLICATION FOR CREDIT. (a) An entity must
141	141	apply for a credit under this chapter on or with the report for the
142	142	period for which the credit is claimed.
143	143	(b) An entity shall file with any report on which the credit
144	144	is claimed a copy of the certificate of eligibility issued by the
145	145	commission under Section 232.004 and any other information required
146	146	by the comptroller to sufficiently demonstrate that the entity is
147	147	eligible for the credit.
148	148	(c) The burden of establishing eligibility for and the value
149	149	of the credit is on the entity.
150	150	Sec. 232.008. SALE OR ASSIGNMENT OF CREDIT. (a) An entity
151	151	that incurs eligible costs and expenses may sell or assign all or
152	152	part of the credit that may be claimed for those costs and expenses
153	153	to one or more entities, and any entity to which all or part of the
154	154	credit is sold or assigned may sell or assign all or part of the
155	155	credit to another entity. There is no limit on the total number of
156	156	transactions for the sale or assignment of all or part of the total
157	157	credit authorized under this chapter, however, collectively all
158	158	transfers are subject to the maximum total limits provided by
159	159	Section 232.005.
160	160	(b) An entity that sells or assigns a credit under this
161	161	section and the entity to which the credit is sold or assigned shall
162	162	jointly submit written notice of the sale or assignment to the
163	163	comptroller on a form promulgated by the comptroller not later than
164	164	the 30th day after the date of the sale or assignment. The notice
165	165	must include:
166	166	(1) the date of the sale or assignment;
167	167	(2) the amount of the credit sold or assigned;
168	168	(3) the names and federal tax identification numbers
169	169	of the entity that sold or assigned the credit or part of the credit
170	170	and the entity to which the credit or part of the credit was sold or
171	171	assigned; and
172	172	(4) the amount of the credit owned by the selling or
173	173	assigning entity before the sale or assignment, and the amount the
174	174	selling or assigning entity retained, if any, after the sale or
175	175	assignment.
176	176	(c) The sale or assignment of a credit in accordance with
177	177	this section does not extend the period for which a credit may be
178	178	carried forward and does not increase the total amount of the credit
179	179	that may be claimed. After an entity claims a credit for eligible
180	180	costs and expenses, another entity may not use the same costs and
181	181	expenses as the basis for claiming a credit.
182	182	(d) Notwithstanding the requirements of this chapter, a
183	183	credit earned or purchased by, or assigned to, a partnership,
184	184	limited liability company, S corporation, or other pass-through
185	185	entity may be allocated to the partners, members, or shareholders
186	186	of that entity and claimed under this chapter in accordance with the
187	187	provisions of any agreement among the partners, members, or
188	188	shareholders and without regard to the ownership interest of the
189	189	partners, members, or shareholders in the rehabilitated certified
190	190	historic structure, provided that the entity that claims the credit
191	191	must be subject to the tax imposed under Chapter 221, 222, 223, or
192	192	224.
193	193	Sec. 232.009. RETALIATORY TAX. An entity that claims a
194	194	credit under this chapter is not required to pay any additional
195	195	retaliatory tax levied under Chapter 281 as a result of the credit.
196	196	Sec. 232.010. RULES. The commission and the comptroller
197	197	shall adopt rules necessary to implement this chapter.
198	198	SECTION 2. This Act applies only to a report originally due
199	199	on or after the date provided by Section 232.002(b), Insurance
200	200	Code, as added by this Act.
201	201	SECTION 3. This Act takes effect September 1, 2017.